Dennis Corporation Prepared the Following Data (In Dollars) for the Current

question 78

Multiple Choice

Dennis Corporation prepared the following data (in dollars) for the current year: Using the indirect method, what is the net cash flow from operating activities?
$\begin{array}{|l|r|}\hline \text {Increase in accounts receivable }&\$6,000\\\hline \text { Decrease in inventory } & 2,400 \\\hline \text { Increase in prepaid expenses } & 1,600 \\\hline \text { Depreciation expense, equipment } & 7,000 \\\hline \text { Loss on sale of equipment } & 1,500 \\\hline \text { Net income } & 130,000 \\\hline\end{array}$

• A)$146,800
• B)$133,300
• C)$101,200
• D)$118,000

---

Definitions:

Cash Received

Money that a business or individual has taken in, whether from transactions, investments, or other sources.

Matching Concept

A fundamental principle in accounting that ensures expenses are matched with the revenues they generate in the same period.

Deferral Adjusting Entry

An accounting entry made to defer the recognition of revenue or expenses to a future period.

Unearned Revenue

Money received by an entity for a service or product that has yet to be delivered or completed.